Pierce Furniture purchased land, paying $90,000 cash and signing a $270,000 note payable. In addition, Pierce paid delinquent property tax of $2,000, title insurance costing $5,500, and $5,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $650,000. It also paid $55,000 for a fence around the property, $13,000 for a sign near the entrance, and $10,000 for special lighting of the grounds Read the requirements Requirement 1. Determine the cost of the land, land improvements, and building The cost of the land is
Pierce Furniture purchased land, paying $90,000 cash and signing a $270,000 note payable. In addition, Pierce paid delinquent property tax of $2,000, title insurance costing $5,500, and $5,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $650,000. It also paid $55,000 for a fence around the property, $13,000 for a sign near the entrance, and $10,000 for special lighting of the grounds Read the requirements Requirement 1. Determine the cost of the land, land improvements, and building The cost of the land is
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Pierce Furniture purchased land, paying $90,000 cash and signing a $270,000 note payable. In addition, Pierce paid delinquent property tax of $2,000, title insurance costing $5,500,
and $5,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $650,000. It also paid $55,000 for a fence around
the property, $13,000 for a sign near the entrance, and $10,000 for special lighting of the grounds
Read the requirements
Requirement 1. Determine the cost of the land, land improvements, and building
The cost of the land is
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